Nvidia at $202 vs $327 target — 62% upside as AI trade wobbles

The pullback in Nvidia shares comes as investors question the long-term return on the massive data-center buildout. Yet there are signs that spending is still accelerating. It cites SK Hynix, the leading high-bandwidth memory supplier to Nvidia's data center components, which reported sales up 328% and operating profit up 632% in its latest quarter, and said 50% of its 2027-2028 memory supply is already sold out, with constrained supply expected through 2030. Those orders are treated as an indirect indicator of Nvidia's own demand.

Cloud growth at Alphabet and Microsoft, which together hold 35% of the cloud market, is also evidence their AI investments are paying off. It notes that both are increasing capital spending. Against that backdrop, the author argues the recent pullback offers a buying opportunity for some investors, citing Nvidia's trailing P/E of about 26 versus the tech sector's 28.5. Nvidia has beaten earnings estimates in seven of the past eight quarters, a reason for optimism ahead of the Nov. 17 report.